The California Legislature has sent bill AB 2409 to the governor for signature, prohibiting government officials and agency employees from issuing digital assets based on internet memes. The measure, passed in August 2026, imposes restrictions on representatives of the state's executive and legislative branches, local authorities, and members of state boards and commissions. The initiative aims to prevent the use of official authority for personal financial gain, eliminate conflicts of interest, and crack down on covert lobbying schemes that could undermine public trust in government institutions.
In addition to the direct ban on officials, the bill restricts digital platform operators from listing such tokens for California residents starting January 1, 2027. The restrictions will apply to projects created by federal, state, or local officials, as well as assets issued by them in partnership with third parties. The law defines this category of assets broadly: it covers instruments whose value or popularity is driven by internet memes, public figures, celebrities, current events, cultural phenomena, and social trends. Enforcement authority is vested in the state attorney general, as well as district and city attorneys, who will have the right to seek court orders to halt unlawful activity and compel the return of proceeds.
The California initiative builds on a broader trend toward regulating politicians' involvement in the virtual currency industry, which had previously emerged at the federal level. In February 2025, California Representative Sam Liccardo introduced the MEME Act, which proposed banning the president, vice president, members of Congress, and their immediate family members from profiting from digital assets. The legislation was prompted by the launch of the speculative tokens TRUMP and MELANIA.